Bitcoin dominance has recently dipped below a crucial level, indicating a shift in market dynamics. This decline shows that the funds are flowing into altcoins, signaling the onset of an “altcoin season.”
Is This The Start of a New Cycle?
According to Coinmarketcap, Bitcoin dominance has dropped to around 56.6%, while Ethereum has climbed to 13.9% and other altcoins now make up 29.5% of the market. This clear rotation of funds away from Bitcoin into altcoins has caught the attention of traders and analysts alike.
Crypto analyst Michaël van de Poppe says that this is the first actual breakdown of the Bitcoin dominance downwards in nearly 3 years. According to him, this marks the end of the prolonged altcoin bear market and the beginning of a new upward cycle, comparing this phase to the period between 2019 and 2020.
Echoing this sentiment, Trader Tardigrade points out that Bitcoin dominance has formed a second bear flag, signaling a potential breakdown. Each drop in dominance tends to trigger a surge in altcoins.
Investor Ted Pillows highlights that altcoin open interest (excluding ETH) has now surpassed Bitcoin’s. Historically, in December 2024 and March 2024, this signaled a local top within two weeks. He also added that in bull markets, sharp 20–30% corrections are normal before the trend continues higher.
Bitcoin Consolidation Signals Breakout Potential.
Meanwhile, Bitcoin itself remains in a consolidation phase
Mike Novogratz, CEO of Galaxy Digital, explained that Bitcoin is consolidating as treasury firms “take their shot” with other tokens. Still, he expects an upswing later this year.
Van De Poppe says that its monthly chart looks phenomenal, signaling more upside ahead. In the short term, he expects consolidation around the $117K resistance, the last major hurdle before a new all-time high. A few days of sideways movement could come before Bitcoin breaks through.
Ted shares a similar view noting that reclaiming $117,200 could open the door to fresh highs within weeks, while rejection may trigger a pullback toward $113,500.
On-chain data also supports this narrative. Glassnode recently shared that Bitcoin has seen three major ranging phases this cycle, each lasting several months. Since late August, BTC has been consolidating around $111K, with the market awaiting a breakout.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed